Business Plan Writing - A Roadmap to Success

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Business Plans ARE important. Key to writing a solid business plan is preparation. This presentation provides you with at least 60 topics & questions which you should prepare and be able to answer yourself before you start writing & launching your business.

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Author: Eva Hukshorn, EFactor

Published in: Business, Economy & Finance
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Business Plan Writing - A Roadmap to Success

  1. 1. Business  Plan  Wri-ng  A  roadmap  to  success  Author:  Eva  Hukshorn   1  
  2. 2. EFactor:  An  introduc4on  •  Founders  Adrie  Reinders,  Marion  Freijsen,  Roeland  Reinders  •  Started  OHM  Inc.  in  2004:  Business  Development  for  Fortune  2000  •  Serving  (mainly)  technology  companies  around  the  globe  •  Goal:  assist  emerging  technology  companies  in  selling  their  product  to  Corporates  •  In  2007  they  wrote  a  book:  The  N-­‐Factor   -  How  efficient  networking  can  change  the  dynamics  of  your  business   -  Huge  success:  no  theory,  but  hands-­‐on  4ps  &  tricks  •  Result:  EFactor  -­‐  a  social  plaTorm  for  entrepreneurs   -  Strategic  business  networking  impacts  the  future  of  your  business   -  Goal:  share  knowledge,  increase  sales,  decrease  costs,  find  capital   -  Mission:  increase  success  of  entrepreneurs  to  start-­‐up  or  accelerate  their  organiza4on   -  In  2012  the  new  book  was  launched:  The  E-­‐Factor:  Entrepreneurship  in  the  Social  Media  Age     EFACTOR,          THE  WORLD’S  LARGEST  ONLINE  NETWORK  FOR  ENTREPRENEURS  ON  EARTH       An  online  community  offering  you  a  network,  knowledge,  events,  and  every  business  resources  you  need  to   succeed   2  
  3. 3. Eva  Hukshorn:  An  introduc4on  •  Work  Experience   -  Current:    Partner  EFactor        Board  of  Advisory:  TreFoil  Energy  /  CleanDrinks  /          Global  Thinkers  /  ShowLinq            Coach  Startup:  Bootcamp  Amsterdam  /  New  Venture  McKinsey   -  2009  –  2010:  Dutch  Bou4que  –  Marktlink  Mergers  &  Acquisi4ons,  Amsterdam   -  2007  –  2009:    Royal  Bank  of  Scotland  –  Corporate  Finance,  Amsterdam   -  2004  –  2009:    ABN  AMRO  –  Corporate  Finance  New  York,  Amsterdam   -  2003  –  2004:    Accenture  –  Consul4ng  London,  Amsterdam  •  Educa-on   -  1997  –  2002:  MSc  Economics,  Finance  –  University  of  Groningen,  the  Netherlands   -  2003:      Interna4onal  &  Asian  Studies  –  Na4onal  Sun  Yat-­‐Sen  University,  Taiwan   -  2009  –  2011:    Cer4fied  Management  Accoun4ng  (CMA)  –  Ins4tute  of  Management  Accountants            (IMA),  United  States   -  2009  –  2001:    Colloquium  General  &  Modern  Art  –  Academy  for  History  of  Art,  the  Netherlands   -  2012:    Interna4onal  Financial  Report  Standards  (DipIFRS)  –  Associa4on  of  Chartered  Cer4fied          Accountants  (ACCA),  United  States   3      
  4. 4. FUNDING  TUESDAY,  EVERY  TUESDAY  So  what  can  you  expect  from  us  each  Funding  Tuesday?  1.  Webinars  on  EFactor  on  Finance  &  Funding  related  topics  in  the  EVENT   Sec4on  2.  Blogs  &  interviews  with  informal  investors  and  funded  entrepreneurs   with  4ps  &  tricks  in  the  BLOGS  sec4on  under  NOW  3.  Finance  &  Funding  related  ar4cles  on  NOW  feed  4.  In  the  Finance  &  Funding  GROUP  on  our  website  you  will  find  Q&As  of  the  webinars  under     NETWORK  5.  In  the  KNOWLEDGE  base  you  will  find  more  and  more  presenta4ons  on  Finance  &  Funding   related  topics,  including  the  webinar  presenta4ons  6.  And  if  you  become  a  VIP  MEMBER  you  will  personally  be  supported  on  your  Finance  &  Funding   related  ques4ons   4    
  5. 5. Webinar  Program  Overview  2012  June  19:    Business  Plan  Wri-ng  -­‐  A  Roadmap  to  Success  July  3:      Pitching  &  Presenta4on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  Geing  There  July  31:    Budge4ng  &  Forecas4ng  -­‐  Predic4ng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua4on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna4ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec4ons  Dec.  4:      Marke4ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs   5    
  6. 6. A  solid  business  plan  is  important:  Luck  is  for  the  unprepared!    Business  plan:  learn  to  Live  &  Breath  your  company,  market  and  customers    Business  plan  as  a  tool:  •  Systema4c  approach  for  mapping  your  idea  •  Focus  •  Entry  strategy  •  Iden4fying  gaps:  knowledge,  experience,  specialists  •  Checklist  of  resources  •  Communica4on  tool  •  Prac4ce  Business  plan  is  for  YOU  and  YOUR  SUCCESS!   Business  Plan  =  Guidebook  for  the  Founder   6  
  7. 7. Some  basic  ingredients  to  start  a  successful  company     3  key  elements  of  life:  Ideas,  People  and  Money   7  
  8. 8. Take  a  different  approach,  become  your  own  investor  •  Your  own  investment  does  not  consist  only   of  4me  spend  •  Become  as  cri-cal  as  your  external   investors  would  be  •  Your  Team  is  as  important  as  your  idea  •  Money  is  the  end-­‐game  of  the  investor,  so   is  yours   You  are  the  biggest  investor  of  them  all!   8  
  9. 9. Evolu4on  of  your  startup  life   YOUR  IDEA   1 •  4me  spend:  6-­‐9  months   •  describe  the  problem  you  are  solving  for  whom   •  test  for  outside  interest   YOUR  BUSINESS  PLAN   2 •  4me  spend:  2-­‐3  months   •  details  of  the  execu4on  process   •  5  years,  3  phases,  1st  phase  18  months  explicit    YOUR  COMPANY   3 •  4me  spend:  ?   •  structure  tasks,  weekly,  monthly   •  success  =  old  investors  out,  new  investors  in   9-­‐12  months  prepara-on  before  launch   9  
  10. 10. Content  to  cover  in  your  founder’s  guidebook   Content  overview   1.  Execu4ve  summary   2.  Idea  descrip4on   3.  Marke4ng  &  sales   4.  Management  team   5.  Organiza4on   6.  Finance   7.  Risk  analysis   8.  Funding   9.  Timeframe   10  
  11. 11. Your  idea:  prepara4on   ü  Problem  to  be  solved   ü  Target  group   ü  Need  by  target  group   ü  Unique  selling  point   ü  Technical  details   ü  Comparable  products  compe4tors   ü  Superiority  of  your  product   ü  Duplicable   ü  Protec4on   ü  Costs  of  produc4on   11  
  12. 12. Your  idea:  business  plan  content  1.  Illustrate  &  quan-fy  2.  Content:   1.  Name  of  product  or  serve   2.  Name  of  founder   3.  Illustra4on  of  product  or  serves   4.  Descrip4on   5.  Benefit   6.  Unique  selling  point   7.  Protec-on   8.  Descrip4on  target  group  &  market   9.  Revenue  model   12  
  13. 13. Marke4ng  &  sales:  prepara4on   ü  Compe44ve  advantage   ü  Compe4tors   ü  Subs4tutes   ü  Describe  customer   ü  Choice  target  segment   ü  Size  market   ü  Market  share   ü  Market  price   ü  Communica4on   ü  Distribu4on   13  
  14. 14. Marke4ng  &  sales:  business  plan  content   BRAND  AWARENESS   SALES  ENCOURAGEMENT   LOYALTY   TEASING  &  POSITIONING   ACTIVATING  &  CONVINCING   SATISFACTION  &  RELATION  •  Recogni4on   •  Understanding  problem   •  Con4nuous  dialogue  •  Messages  frequent  &   •  Awareness  of  ‘how’  problem   •  Deliver  promises   consistent   is  solved   •  Solve  problem  •  Posi4ve  feelings   •  Products  &  services  are   •  Create  long-­‐term  rela4on  •  Awareness  of  USP   easily  accessible   •  Rela4on  con4nues  even  •  “Experience”   •  Administra4on  process  are   ater  product  or  services  is   clear  &  prac4cal   delivered   55%   35%   10%   14  Note:  www.BiTSEN.nl,  Frans  de  groot  /  Toon  ten  Cate  
  15. 15. Marke4ng  &  sales:  business  plan  content   BRAND/IMAGE  –  TEASING   BRAND/IMAGE  –  POSITIONING   SALES/TRAFFIC  -­‐  ACTIVATING   Radio  Public  transport   Television  Magazines   Conferences  Congresses   Free  Publicity  Press  release   Advertorials  Press  interviews   Seminars  Direct  mail   Guerilla  Bill  Boards   Brochures  Website   E-­‐mail  Telemarke4ng   Spectacular  SMS   News  Rooms  Podcasts   Leaflets  Ac4on  website   Tell  a  friend  Cars   Flicker  Video  /  YouTube   Free  cards  Point  of  traffic     Partners  TV  shows   Newspapers  SEO  /  SEA         Social  communi4es*       SALES/TRAFFIC  -­‐  CONVINCING   LOYALTY  -­‐  SATISFYING   LOYALTY  -­‐  RELATIONSHIP   Sales  promo4on  Premium  Services   Membership  Cashback  card   Blogs  Widget   Personal  sales  Sales  presenta4ons   Events  Newslewers   Tes4monials  Book  wri4ng   Sales  training  Sales  coaching   News  updates  Forum   Member-­‐brings-­‐in-­‐member   Product  folders  Sampling   Educa4on  Apps     In-­‐house  /  online  magazine   Trials  Case  studies   Online  games  Panels   Individual  entertainment  &  business   Tes4monials  Post-­‐ordering   Mentoring  Q&A     rela4onship  building  events   Catalogue  Display   Video  calling  Workspace   15  Note:  www.BiTSEN.nl,  Frans  de  groot  /  Toon  ten  Cate  
  16. 16. Management  team:  prepara4on   ü  Members  &  responsibili4es   ü  Creden4als   ü  Founders   ü  Skills   ü  Missing  skills   ü  Expansion   ü  Mo4va4on   ü  Advisors   ü  Contracts   ü  Opera4onal  procedures   16  
  17. 17. Management  team:  business  plan  content  1.  1  page  +  appendix  2.  Pictures,  -tles  3.  Short  summary  of  responsibili-es  4.  Op-onal:  skill  profile   Nego-a-on   Networking   Leadership   Marke-ng   ini-a-ve   Product   Finance   Process   Social   Legal   Sales   Tech   HR  Maria   Y   N   N   Y  John   N   Y   Y   N   Y  Carry   N   Y   Y   Y  Mike   N   Y   N   17  
  18. 18. Organiza4on:  prepara4on   ü  Business  model  and  supply  chain   ü  Ac4vi4es  in-­‐house   ü  Ac4vi4es  outsourced   ü  License   ü  Main  focus  business  model   ü  Organiza4on  chart   ü  Team  expansion  and  costs   ü  Corporate  culture   ü  Picking  partners     ü  Your  added  value   18  
  19. 19. Finance:  prepara4on   ü  Assump4ons   ü  Cash  flows  next  18  months   ü  Cash  flow  next  3-­‐5  years   ü  Profit  &  Loss  next  3-­‐5  years   ü  Balance  sheet  next  3-­‐5  years   ü  Ra4o’s  &  drivers   ü  Break-­‐even  point   ü  Capital  need  un4l  break-­‐even   ü  Capital  need  best-­‐case   ü  Capital  need  worst-­‐case   19  
  20. 20. BALANCE SHEETxUSD ths 2012 2013 2014 2015 2016ASSETS Cash 0 0 0 0 0 Account receivables 0 0 0 0 0 Inventories 0 0 0 0 0 Prepaid expenses 0 0 0 0 0 Other current assets 0 0 0 0 0Total current Assets 0 0 0 0 0 Property, Plants, Equipement 0 0 0 0 0 Leasehold improvements 0 0 0 0 0 Vehicles 0 0 0 0 0 Other fixed assets 0 0 0 0 0Total fixed Assets 0 0 0 0 0TOTAL ASSETS 0 0 0 0 0EQUITY & LIABILITIES Accounts payables 0 0 0 0 0 Short-term interest bearing debt 0 0 0 0 0 Accrued expenses 0 0 0 0 0 Other current liabilities 0 0 0 0 0Total current Liabilities 0 0 0 0 0Long term interest bearing debt 0 0 0 0 0 Paid-in capital 0 0 0 0 0 Retained earnings 0 0 0 0 0Total Equity 0 0 0 0 0TOTAL EQUITY & LIABILITIES 0 0 0 0 0 error check = 0 0.0 0.0 0.0 0.0 0.0
  21. 21. PROFIT & LOSS STATEMENTxUSD ths 2012F 2013F 2014F 2015F 2016FSales Sales prod. A 0 0 0 0 0 Sales prod. B 0 0 0 0 0 Other Income 0 0 0 0 0Total Sales 0 0 0 0 0 growth rate #DIV/0! #DIV/0! #DIV/0! #DIV/0!Cost of Goods Sold COGS prod. A 0 0 0 0 0 COGS prod. B 0 0 0 0 0Gross Profit 0 0 0 0 0 gross margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!Selling, General & Administrative Expenses Housing 0 0 0 0 0 Utilities 0 0 0 0 0 Management Fees 0 0 0 0 0 Personnel 0 0 0 0 0 Office expenses 0 0 0 0 0 Telephone costs 0 0 0 0 0 Subscriptions 0 0 0 0 0 Internet/website 0 0 0 0 0 Maintenance 0 0 0 0 0 Marketing 0 0 0 0 0 Travel & entertainment 0 0 0 0 0 Accounting 0 0 0 0 0 Legal 0 0 0 0 0 Other 0 0 0 0 0Total SG&A 0 0 0 0 0 SG&A margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!EBITDA 0 0 0 0 0 EBITDA margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Depreciation 5 0 0 0 0 Amortization 0 0 0 0 0EBIT -5 0 0 0 0 EBIT margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Interest 0 0 0 0 0Net Profit Before Taxes -5 0 0 0 0 Profit margin #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
  22. 22. CASH FLOW STATEMENTxUSD ths Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012FCASH INFLOWS Cash Sales prod. A 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash Sales prod. B 0 0 0 0 0 0 0 0 0 0 0 0 0 Payment of receivables 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL CASH IN 0 0 0 0 0 0 0 0 0 0 0 0 0CASH OUTFLOWS Cost of Goods Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 Housing 0 0 0 0 0 0 0 0 0 0 0 0 0 Utilities 0 0 0 0 0 0 0 0 0 0 0 0 0 Management Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 Personnel 0 0 0 0 0 0 0 0 0 0 0 0 0 Office expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 Telephone costs 0 0 0 0 0 0 0 0 0 0 0 0 0 Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0 Internet/website 0 0 0 0 0 0 0 0 0 0 0 0 0 Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0 Marketing 0 0 0 0 0 0 0 0 0 0 0 0 0 Travel & entertainment 0 0 0 0 0 0 0 0 0 0 0 0 0 Professional advisors 0 0 0 0 0 0 0 0 0 0 0 0 0 Tax 0 0 0 0 0 0 0 0 0 0 0 0 0 Payment payables 0 0 0 0 0 0 0 0 0 0 0 0 0 Loan Payments 0 0 0 0 0 0 0 0 0 0 0 0 0 Bank charges 0 0 0 0 0 0 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL CASH OUT 0 0 0 0 0 0 0 0 0 0 0 0 0 Cash in minus out per period 0 0 0 0 0 0 0 0 0 0 0 0 0 Funding (needed)/excess 0 0 0 0 0 0 0 0 0 0 0BEGINNING BALANCE 0 0 0 0 0 0 0 0 0 0 0 0 0ENDING BALANCE 0 0 0 0 0 0 0 0 0 0 0 0 0
  23. 23. SWOT  analysis:  Know  Thyself   INTERNAL:  Strength  &  Weaknesses   EXTERNAL:  Opportuni-es  &  Threats   •  Resources:  financial,  intellectual   •  Poli4cal   •  Customer  service   •  Legal   •  Efficiency   •  Economic  condi4on  market   •  Compe44ve  advantages   •  Expecta4ons  of  stake  &  shareholders   •  Infrastructure   •  Technology   •  Quality  &  price   •  Public  expecta4ons   •  Delivery  4me   •  Compe44ve  environment   •  Costs   •  Barriers  to  entry   •  Capacity   •  Commodity  prices   •  Personnel  /  management   •  Amount  of  customers   •  Organiza4onal  structure   •  Structure  of  suppliers   23  
  24. 24. Funding:  prepara4on   ü  Capital  need  un4l  break-­‐even   ü  Capital  in  up-­‐  &  downside  case   ü  How  many  funding  rounds   ü  Own  funds  available   ü  External  funds  needed   ü  Deal:  money  versus  equity/debt   ü  Terms  &  condi4ons   ü  Investor  type   ü  Return  on  investment   ü  Exit   24  
  25. 25. SOURCES & USES OF FUNDSxUSD thsSOURCES Cash on hand 0 Investment Founder 0 Investment Others 0 Incentives & Grants 0Total Invested Capital 0 Bank loans 0 Personal Loans 0 SBA Guaranteed Loans 0 Other Loans 0Total Debt Capital 0TOTAL SOURCES 0FUNDS Rent/housing 0 Equipement 0 Inventory 0 Working capital 0 Insurance 0 Advisors 0 Reserves 0 Promotions 0 Product development 0TOTAL FUNDS 0 error 0
  26. 26. A  summary  of  your  vision  and  strategy:  your  milestone  overview   2012   2013   2014   2015   2016   M M M Business Product Beta test Going to Get Product Going to Promotion Plan develop market US work development market campaign ment Product space Prod. B Prod. A develop Alpha Break- Expand in EU + ment Customers Promotion Beta test even India campaign Employees 3 5 8 10 12 15 20 25 Revenue / margin 200k / 10% 1mio / 17.3% 4mio / 21% 12mio / 28% Capital need: USD 150k 2nd round: USD 1mio 3rd round: USD 3mio 26  
  27. 27. Conclusion  &  final  remarks  CONTENT  &  QUESTIONS  for  prepara-on   Next  webinar  =   Don’ts:   July  3:  Pitching   1.  Quick  valida4on   &  Presenta-on  -­‐   3  Minutes,  1   2.  Sales  most  relevant   Impression     3.  Delete  trial  balloons   4.  Wrong  audience   5.  Advisor  plague   6.  Poor  understanding  financials   7.  Poor  understanding  product   8.  Underes4mate  compe44on   9.  Low  pricing  strategy   10. Under-­‐define  capital  requirements   DO:  BE  PREPARED!!     Business  plan  wri-ng  =  Roadmap  to  success!   27  
  28. 28. Webinar  Program  Overview  2012  June  19:    Business  Plan  Wri4ng  -­‐  A  Roadmap  to  Success  July  3:    Pitching  &  Presenta-on  -­‐  3  Minutes,  1  Impression  July  17:    Strategy  -­‐  A  Vision  for  the  Future,  A  Strategy  for  Geing  There  July  31:    Budge4ng  &  Forecas4ng  -­‐  Predic4ng  the  Outcome  Aug  14:    Working  Capital  -­‐  An  Unknown  Key  to  Success  Aug.  28:    Capital  Management  -­‐  Playing  with  Risk  Sept  11.:    Funding  &  Investments  -­‐  Some  Sources  are  More  Equal  then  Others  Sept.  25:    Valua4on  -­‐  Art  or  Science  Oct  9:      Exit  Strategy  -­‐  Nice  to  Have  or  Need  to  Have?  Oct.  23:    Bootstrapping  -­‐  An  Alterna4ve  Answer  to  Funding  Nov  6:    Crowdfunding  -­‐  The  Power  of  Friends,  Family  and  Fools  Nov.  20:    Networking  -­‐  Nice  You  have  3000  Friends,  I  have  30  Relevant  Connec4ons  Dec.  4:      Marke4ng  &  (Social)  Media  -­‐  Noise  or  Value?  Dec.  11:    No  Sales,  No  Glory  Dec.  18:    Most  Common  Mistakes  of  Entrepreneurs   28    
  29. 29. BECOME  A  VIP  MEMBER  WITHIN  1  WEEK  AND  GET  YOUR  PLAN  CHECKED!  1.  Increased  Business  Exposure  and  Social  Media  Integra-on  2.  Jay  Abrahams  Business  Maximizer  Manual  3.  Access  To  Exclusive  Expert  Events  Twice  A  Month  4.  "Special  Solu-on"  Ac-on-­‐Based  Reports,  at  least  twice  a  month    5.  VIP  Only  Discounts  6.  VIP  Weekly  Newslener  7.  VIP  Inner  Circle  8.  eProducts  from  the  worlds  largest  library  9.  IN  ADDITION:  If  you  anended  this  workshop  AND  become  a  VIP  Member  of  EFactor  within   ONE  WEEK,  you  can  send  me  you  ques-ons  on  working  capital  and  I  will  provide  you  with   assistance:  www.efactor.com/hukshorn         HTTP://WWW.EFACTOR.COM/VIP     29  
  30. 30. Thank  you!    This  document  was  prepared  by  Eva  Hukshorn.  Several  people  and  organiza-ons  have  inspired  her  to  write  this  presenta-on,  amongst  which  are,  but  not  limited  to  the  Founders  of  EFactor,   McKinsey&Company/NewVenture,  BiTs,  ABN  AMRO/RBS  

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